[somenewaccount1]

You missed the part where the private company 'authenticates the bill being cut in half' in order for them to surrender the private key.

So, in theory, the bill has the printed Satoshi value and doesn't need a smart phone to verify. Rotlmao.

In practice, the company gets hacked, loses all the keys, and now all these bills in the wild look legit but have no value. Also, they will be counterfeited like all other bills, except easier because thier not a government mint.